Swiss SIX Backs “Data Center Neutrality” to End Speed Dispute
By Tom LoBianco | Quincy News Correspondent
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Zurich (Quincy News) — Switzerland’s chief stock exchange has backed off a plan that would have throttled competitors’ trading speed after concerns were raised by McKay Brothers, a low-latency wireless trading provider. (Disclosure: McKay Brothers is a sister company to Quincy Data, which publishes Quincy News.)
SIX Exchange (SIX) and McKay Brothers jointly announced the agreement last month ensuring that competitors operating within the exchange’s data center can transmit data on an even playing field. It reflects a broader shift in financial trading toward wireless connectivity, where small differences in data center latency can influence competitive outcomes.
The settlement comes after McKay Brothers co-founder Stéphane Tyc challenged SIX’s initial plans to technically delay competitors, giving SIX’s wireless service a competitive advantage over other independent providers like McKay.
The swift market correction in Switzerland was largely due to the intervention of the Competition Commission (COMCO), the country’s antitrust authority. After SIX requested COMCO’s permission to ‘latency shape’ the market, McKay raised a formal challenge with the commission which ended with a prompt resolution.
“SIX has decided to extend this commitment of equal treatment to all network operators and market data vendors (Vendors) offering services in the data centre. All Vendors will be treated in a fair, reasonable, and non-discriminatory manner.” SIX said in a statement announcing the agreement. “SIX will observe a strict neutrality when connecting all network providers to colocated clients.”
Tyc lauded SIX’s agreement in a statement.
“McKay is delighted to work with SIX to enhance its clients’ colocation experience” said Tyc. “SIX’s commitment to treat vendors in a fair, reasonable, and non-discriminatory manner aligns with McKay’s long standing values. SIX’s initiative fills a gap in the European regulation and McKay urges other European exchanges to commit to the same fair, reasonable and nondiscriminatory treatment of all connectivity providers. Many of the largest exchanges are delivering equality and this is a welcomed sign.”
The joint settlement between SIX and McKay comes amid a broader shift toward fairness and neutrality in exchange access globally, as firms leverage advanced wireless networks alongside traditional fiber optics. Wireless technology can improve synchronization across markets, narrowing the time gap between when different participants receive critical market data and risk management information.
The speed of the Swiss resolution stands in contrast to the ongoing dispute in the United Kingdom. The London Stock Exchange Group (LSEG) has been the subject of a multi-year investigation by the Financial Conduct Authority (FCA) over concerns that it was giving unfair advantage to its own wireless provider, Exchange Wireless Service (EWS), at its data center. While the LSEG case has been slowed by regulatory delays, SIX reached a settlement relatively quickly.
The UK’s approach is showing some momentum, however. Through a formal “Notice of Intention to Accept Commitments” (NIAC) the FCA has outlined a new framework to ensure fair play. Under the plan, the LSEG must give outside competitors the same access that it gives its own services.
As trading technology continues to outpace market oversight, the efficiency of the resolution process has become a central consideration, especially for independent connectivity providers like McKay. The company has secured similar outcomes in challenges against U.S. industry giants, including the NYSE and Nasdaq, over access and the fairness of exchange connectivity rules.
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